I recently bought Unreal Tournament 3 Black Edition and the first time I started it there was a message saying my system did not meet the minimum requirements, but I checked on System Requirements Lab and my specs surpass even the recommended settings, let alone the minimum.

The only problem I have is that I'm running Windows 7, but I've even tried it in compatibility mode with XP Service Pack 2 and there was no difference. From what I've read online it shouldn't make a difference that I'm running Windows 7 anyway.

I can still play the game, but the quality is really low. I've messed around with toggling various video settings to no avail. The game just looks very pixelated. I've played on PS3 and that is not how it looked at all, so I was wondering if this is normal for PC or if there is something I can do about it.

I took this screenshot from System Requirements Lab to show my specs versus the recommended specs.

I also got the "Windows 7 failure" and the game works perfect on me, lol
can you take a picture in-game? to see how it looks. Have you tried changed to a higher resolution (Anyways my pc is crap, but I was able to change all to full detail mode and stuff, and it looks perfect, but with 8 fps I cant very much a thing lol)
I hasn't got that error... check your resolution!